§ 39-22-532 — Advanced industry investment tax credit - definitions

Colorado § 39-22-532

• Jurisdiction: Colorado
• Title 39: Taxation
• Art.: Income Tax

Text

(1) As
used in this section, unless the context otherwise requires:

(a) Advanced industry investment tax credit or tax credit means the
credit against income tax created in this section.

(b) Qualified investment shall have the same meaning as set forth in
section 24-48.5-112 (1)(e), C.R.S.

(c) Qualified investor shall have the same meaning as set forth in section
24-48.5-112 (1)(f), C.R.S.

(d) Qualified small business shall have the same meaning as set forth in
section 24-48.5-112 (1)(g), C.R.S.

(e) Tax credit certificate means a tax credit certificate issued to a qualified
investor pursuant to section 24-48.5-112 (3), C.R.S.

(2) There shall be allowed an advanced industry investment tax credit
against the income taxes imposed pursuant to this article for a qualified investment
in a qualified small business. The amount of the credit is the amount determined
and authorized by the Colorado office of economic development pursuant to
section 24-48.5-112, C.R.S., and set forth in a tax credit certificate.

(3) To claim the advanced industry investment tax credit, the taxpayer shall
attach to the taxpayer's tax return a copy of the tax credit certificate. No tax credit
is allowed under this section unless the taxpayer provides the copy of the tax credit
certificate.

(4) If the allowable advanced industry investment tax credit exceeds the
amount of income tax due on the income of the taxpayer for the tax year during
which the qualified investment was made, the amount of the tax credit not used as
an offset against income taxes in such income tax year is not allowed as a refund.
The taxpayer may carry forward and apply the unused credit against the income tax
due in each of the five succeeding income tax years, but the taxpayer shall apply
the credit against the income tax due for the earliest of the income tax years
possible. Any amount of the tax credit that is not used after this period is not
refundable.

(5) Repealed.

(6) If the department of revenue determines that there has been a
misrepresentation on an application submitted to the Colorado office of economic
development pursuant to section 24-48.5-112, C.R.S., the department of revenue
shall deny the advanced industry investment tax credit if the misrepresentation
relates to whether the applicant was a qualified investor or made a qualified
investment. If the misrepresentation relates to whether the investment was made to
a qualified small business, the department of revenue shall deny the tax credit only
if the applicant knew or should have known at any time before the certification that
the representation was false.

(7) If a qualified investor receiving a credit allowed in this section is a
partnership or S corporation, the qualified investor may allocate the credit among
its partners or shareholders in any manner agreed to by such partners or
shareholders. If the qualified investor receiving the credit allowed by this section is
a trust, the qualified investor may allocate the credit between the trust and its
beneficiaries in any manner determined by the trust. The qualified investor shall
certify to the Colorado office of economic development the amount of the credit
allocated to each partner, shareholder, or beneficiary and the office shall issue
credit certificates in the appropriate amounts to each partner, shareholder, or
beneficiary. Each partner, shareholder, or beneficiary shall be allowed to claim such
amount subject to any restrictions set forth in this section and section 24-48.5-112.

Legislative History

Source: L. 2009: Entire section added, (HB 09-1105), ch. 378, p. 2059, � 4, effective September 1. L. 2011: (4) amended, (HB 11-1045), ch. 209, p. 907, � 3, effective May 23. L. 2014: (1)(a), (2) to (4), and (6) amended, (HB 14-1012), ch. 274, p. 1102, � 3, effective May 29. L. 2022: (5) repealed and (7) added, (HB 22-1149), ch. 358, p. 2571, � 2, effective August 10. L. 2025: (7) amended, (HB 25-1157), ch. 213, p. 966, � 2, effective August 6.